Tax Guide for Expat in Amsterdam
Income Tax
Personal Income Tax rates are quite high (the highest tax rate is 52%), and anyone who is resident for more than 6 months of a year is considered a resident for tax purposes. The Netherlands has tax treaties with many other countries so, in general, you won’t be taxed twice for income earned in different countries; however it is always advisable to seek professional advice.
Income can be split between spouses for tax purposes.
30% tax rule for expats – this enables 30% of income to be paid tax free if certain conditions are met, and the 30% tax is applied for by the employer. In order to be eligible for the ruling, you must be employed by a company in the Netherlands (not self-employed, unless you set up an international company in the Netherlands); the agreement to apply for the 30% ruling must be between the employer and employee, in writing; the employer must have recruited the employee from abroad, for a job that was specifically difficult to fill from the Dutch labour market; and, in relation to this last point, the employee has to have experience or skills which can be proven are difficult to find on the Dutch labour market, which can be shown to be why this employee is needed in the particular line of work.
It is worth noting that even though the 30% ruling has such strict conditions about employment and the initial conditions of coming to the Netherlands for work, it is also transferable to a new employer if you change jobs. The rule applies for a maximum period of 10 years.
Income from shares
This is taxed at 25%
Income from savings and investments
This is effectively taxed at a low rate of only 1.2%.
Dutch Ministry of Finance website on taxation (in English) http://www.government.nl/
VAT
There is also a VAT added to the cost of most goods purchased in the Netherlands, the rate is 21% for most goods, and 6% for items such as books.
Other taxes to be paid apart from income tax
If you rent an apartment, you do not pay for local taxes which include property tax, sewerage charges, water board assessments, and pollution levy. These taxes can easily total €3000 per year.
However, in some rental agreements, the waste collection levies burden the tenant, which, depending on the district of the apartment, are between 220 and 380 euros annually.
